Annual Report 2008 - Ministry of Finance and Planning
Annual Report 2008 - Ministry of Finance and Planning
Annual Report 2008 - Ministry of Finance and Planning
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7. Development <strong>Finance</strong><br />
274<br />
Small <strong>and</strong> Medium Entrepreneurs who are willing to startup<br />
SME or a SME undertaking expansion or modernization,<br />
its with an annual turnover not exceeding Rs. 300 mn. <strong>and</strong><br />
its fixed assets-excluding l<strong>and</strong> <strong>and</strong> buildings not exceeding<br />
Rs. 100 mn, those employing between 05 <strong>and</strong> 150 staff<br />
are eligible for funding under the SMERDP. The Private<br />
Commercial Banks (PCBB) shall on-lend to sub-borrowers<br />
(SMEE) at an interest rate that reflects their cost <strong>of</strong> funds plus<br />
a spread to cover transaction cost <strong>and</strong> risks. The maximum<br />
sub-loan size shall be Rs. 20 million that each sub-loan shall<br />
not exceed seventy five percent (75%) <strong>of</strong> total sub-project<br />
cost <strong>and</strong> each sub-loan shall have minimum tenure <strong>of</strong> 04<br />
years.<br />
The details <strong>of</strong> the ADB loan amount which has been allocated<br />
among the PCBB are given below.<br />
Table 7.13<br />
Details <strong>of</strong> allocations <strong>of</strong> funds<br />
Bank Amount US $<br />
DFCC Bank<br />
Commercial Bank<br />
NDB Bank<br />
Smapath Bank<br />
Source: DFCC, NDB, Commercial Bank, Sampath Bank<br />
15.00 mn<br />
15.00 mn<br />
10.00 mn<br />
10.00 mn<br />
The following sub sectors are eligible to obtain financial<br />
facilities under SMERDP, namely Fisheries, Dairy <strong>and</strong><br />
Animal Husb<strong>and</strong>ry, Fruit <strong>and</strong> Vegetable (horticulture),<br />
Aquarium & Floriculture, Food Processing & Beverage, Agro<br />
Industries, Spices, Leather <strong>and</strong> Allied Products, Rubber<br />
Products, Construction Materials, Metal Products, Gem &<br />
Jewellery, Wood Products, Herbal & Natural Products, Textile<br />
& Garments, Plastic Products, Information Technology,<br />
Education H<strong>and</strong>icrafts, Fertilizer <strong>and</strong> Agro Chemical <strong>and</strong><br />
services.<br />
The project is implemented through four Private Commercial<br />
Banks (PCBB): the DFCC Bank, the Commercial Bank, the<br />
National Development Bank, <strong>and</strong> the Sampath Bank.<br />
Financing Plan: The estimated total cost <strong>of</strong> the project, US$<br />
88.89 mn is being funded as follows.<br />
Table 7.12<br />
Sources <strong>of</strong> Funds<br />
Source Total US$ mn %<br />
ADB 50.00 56.25<br />
PCBs 16.67 18.75<br />
SMEs 22.22 25.00<br />
Total 88.89 100.00<br />
Progress <strong>of</strong> Credit Component:<br />
Table 7.14<br />
Progress <strong>of</strong> Withdrawal <strong>of</strong> Funds from ADB 16th May to<br />
31st December <strong>2008</strong><br />
Bank Funds Withdrawal %<br />
allocated (US$ mn.)<br />
by ADB<br />
(US$ mn.)<br />
DFCC Bank 15.0 4.02 27<br />
Commercial Bank 15.0 2.60 17<br />
Sampath Bank 10.0 1.88 19<br />
NDB Bank 10.0 1.00 10<br />
Total 50.0 9.50 19<br />
Source: DFCC, NDB, Commercial Bank, Sampath Bank<br />
The progress made by the bank during same period is given<br />
in table 7.14.<br />
Complementary Component <strong>of</strong> the SMERDP is as follows<br />
1. Enhancing PCB Governance<br />
- Track PCBs compliance with CBSL code <strong>of</strong> corporate<br />
governance for banks <strong>and</strong> financial institutions.<br />
Source: DFCC, NDB, Commercial Bank, Sampath Bank<br />
<strong>Ministry</strong> <strong>of</strong> <strong>Finance</strong> <strong>and</strong> <strong>Planning</strong> Sri Lanka<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2008</strong>
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